who owns the money in a joint bank account

A joint account is "an account payable on request to one or more of two or more parties whether or not mention is made of any right of survivorship." Lester Aldridge LLP is authorised and regulated by the Solicitors Regulation Authority (SRA ID: 463177). A real life example of such a challenge is the case of  Drakeford v Cotton [2012] EWHC 1414 (Ch), where the High Court had to consider who would receive the funds held in two joint accounts. Do you have to disclose that account to them or only accounts in your own name? For example, if the account has overdraft protection, all account holders may be responsible for repaying debts. However, it is important to: Our Disputed Wills Team advises about disputes involving joint bank accounts after death. making a Lasting Power of Attorney – to allow a relative to manage your finances if you become unable to do so; Document the account holders’ intentions with regard to how the funds in a joint account are owned and are to be used; Understand how HMRC may treat the joint account for Inheritance Tax purposes, in the event of your death; Consider whether any restrictions should be placed on the account e.g. The usual position is that on death of one of the account holders, the joint account will pass by the rule of survivorship to the surviving account holder, outside the terms of the deceased’s Will. Before you open a joint account… Prevent penalties: Closing a joint bank account prevents the co-owner from using the account irresponsibly and incurring overdraft and other fees. But what if only one party put all the money into the joint bank account? Let's talk about why. This type of account ownership generally states … Although, joint accounts can be very useful, they can also cause problems and prompt disputes about who owns the funds held in the account. You deposited some money in your bank account. With a joint account, all account holders are entitled to make and view transactions, hold a bank card, and pay money in. The High Court decided that the accounts were originally held for Mrs Cotton’s sole benefit, but there was evidence that, from 2008 onwards, Mrs Cotton had changed her intention, so that the funds were (from then on) to be held by Mrs Stain and Mrs Cotton on a joint basis. In the UK, bank and building society accounts are generally held by the joint account holders as ‘joint tenants’, so that on the death of one account holder the funds in the account pass to the surviving account holder by the principle of survivorship. In these cases, three different Ontario families had the same problem. I did not give the money to the bank. In most cases there is no need to wait for the Grant of Probate, the surviving account holder only need to provide the death certificate to the appropriate bank who will then transfer the account into the survivor’s sole name. This type of account can be used for lots of reasons, e.g. The bank might take money from someone’s personal account to cover the overdraft in the joint account how to handle disagreements or the end of a relationship between joint account holders. Do you think Deji and KSI would have fallen out if Deji had beaten Jake Paul? The easiest way to avoid any joint bank/building account problems arising is to keep funds held separately, but that may not always be possible. What Happens to a Joint Bank Account When One Account Holder Dies? Consider whether having a joint account is absolutely necessary, or whether there is another option e.g. The bank has the right to deal with the money in accordance with the contract they have with their customer. Joint accounts are a flexible way to manage shared household expenses such as utility bills and mortgage payments A joint bank account is an account that you can share with your partner, housemates, or family. Part 1 – Who owns the money in your bank account? You're also responsible for any transactions made by the other account holder. In those scenarios, it seems pretty clear who owns the money in the joint accounts, doesn’t it? 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